Vidhi Specialty Food Ingredients Ltd · NSE:VIDHIING
Vidhi Specialty Food Ingredients — H1 FY23 Earnings Presentation
36 slides from Vidhi Specialty Food Ingredients's earnings presentation, Nov 11, 2022
Slide 1: Exchange filing cover letter for investor presentation
Date: November 11, 2022 To, The Manager, The Manager, Department of Corporate Services (DCS-Listing) Listing Compliance BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Dalal Street, Exchange Plaza, C-1, Block G, Bandra Kurla Mumbai- 400001 Complex, Bandra (E), Mumbai – 4
Slide 2: Vidhi Specialty Food Ingredients Limited Investor Presentation – November 2022
Vidhi Specialty Food Ingredients Limited COLOURS You Can Trust For Your Food Investor Presentation – November 2022
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Vidhi Specialty Food Ingredients Limited [Formerly known as 'Vidhi Dyestuffs Manufacturing Limited] (the “Company’), have been prepared solely for information purposes and do not constitute an
Slide 4: Q2 & H1FY23 Financial Performance
Q2 & H1FY23 Financial Performance 3
Slide 5: Q2 & H1 FY23 Performance Highlights
Q2 & H1 FY23 Performance Highlights Q2 FY23 (Q‐o‐Q) H1 FY23 (Y‐o‐Y) Revenue Revenue (11.0)% (1.3)% 107.4 Crs 228.1 Crs EBITDA EBITDA (8.5)% (23.1)% 14.8 Crs 30.9 Crs PAT PAT (7.1)% (23.6)% 10.2 Crs 21.3 Crs COLOURS You Can Trust For Your Food 4
Slide 6: Q2 & H1FY23 Consolidated Key Highlights
Q2 & H1FY23 Consolidated Key Highlights Revenue (Rs. in Crs) EBIDTA (Rs. in Crs) PAT (Rs. in Crs) 231.1 228.1 40.2 27.8 30.9 21.3 120.7 107.4 16.2 11.0 14.8 10.2 Q1FY23 Q2FY23 H1FY22 H1FY23 Q1FY23 Q2FY23 H1FY22 H1FY23 Q1FY23 Q2FY23 H1FY22 H1FY23 COLOURS You Can Trust For Your Food 5
Slide 7: Q2 & H1FY23 Consolidated Profit & Loss Statement
Q2 & H1FY23 Consolidated Profit & Loss Statement Particulars (Rs in Crs) ‐ Consolidated Q2 FY23 Q1 FY23 Q‐o‐Q H1FY23 H1FY22 Y‐o‐Y Revenue from Operations 107.4 120.7 (11.0)% 228.1 231.1 (1.3)% Total Expenses 78.3 90.1 168.4 166.3 Gross Profit 29.1 30.6 (4.7)% 59.7 64.8 (7.9)% GP % 27.1% 25.3% 26.2%
Slide 8: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs in Crs) Sep‐22 Mar‐22 Particulars (Rs in Crs) Sep‐22 Mar‐22 Equity Share Capital 5.0 5.0 Property, Plant and Equipment 35.3 35.7 Other Equity 231.3 212.0 Capital Work-in-progress 58.3 37.2 Total Equity 236.3 217.0 Right to Use 3.2 3.2 Financial Liabilities
Slide 9: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Cash Flow Statement Sep‐22 Sep‐21 Cash Flow from Operating Activities Profit before Tax 27.8 37.9 Adjustment for Non-Operating Items (3.8) (2.3) Operating Profit before Working Capital Changes 31.7 40.3 Changes in Working Capital 25.1 (56.4) Cash Generated from Opera
Slide 10: Historical Financials Performance
Historical Financials Performance 9
Slide 11: Consolidated Operating Performance
Consolidated Operating Performance Revenue from Operations (Rs. in Crs) EBIDTA (Rs. in Crs) 537.1 84.6 +26.1% +28.0% 50.4 52.5 266.4 46.1 212.6 228.4 224.6 31.5 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Profit before Tax (Rs. in Crs) Profit after Tax (Rs. in Crs) 79.0 +30.0% 44.8 +34.0% 33.9
Slide 12: Consolidated Historical Profit & Loss Statement
Consolidated Historical Profit & Loss Statement CAGR (FY18 – Particulars (Rs in Crs) Mar‐22 Mar‐21 Mar‐20 Mar‐19 Mar‐18 FY22) Revenue from Operations 537.1 266.4 224.6 228.4 212.6 26.1% Total Expenses 398.1 172.9 133.5 145.3 144.9 Gross Profit 139.0 93.6 91.2 83.0 67.6 19.7% GP % 25.9% 35.1% 40.6% 3
Slide 13: Consolidated Historical Balance Sheet
Consolidated Historical Balance Sheet Particulars (Rs in Crs) Mar‐22 Mar‐21 Mar‐20 Mar‐19 Mar‐18 Particulars (Rs in Crs) Mar‐22 Mar‐21 Mar‐20 Mar‐19 Mar‐18 Equity Share Capital 5 5.0 5 5.0 5.0 Property, Plant and Equipment 35.7 26.8 40.2 30.8 29.3 Other Equity 211.9 156.3 123.7 96.0 72.0 Capital Wor
Slide 14: Consolidated Abridged Cash Flow Statement
Consolidated Abridged Cash Flow Statement Cash Flow Statement Mar‐22 Mar‐21 Mar‐20 Mar‐19 Mar‐18 Cash Flow from Operating Activities Profit before Tax 78.9 49.6 45.2 40.9 24.5 Adjustment for Non-Operating Items 6.7 4.8 6.1 5.3 7.1 Operating Profit before Working Capital Changes 85.7 54.3 51.3 46.2 3
Slide 15: Sustainable Return Ratios
Sustainable Return Ratios Cash flow from Operations Borrowings and Cash & Cash Equivalents Rs. In Crs Rs. In Crs 33.2 Cash & Cash Equivalents 89.5 • In FY22 Cashflow impacted negatively 27.7 Borrowings 22.1 as company had built up inventory 11.2 considering volatile geopolitical 42.1 42.2 environmen
Slide 16: Company Overview
\V ia VIDHI | SPECIALTY FOOD INGREDIENTS LIMITED. Company Overview
Slide 17: All About Food Colours
All About Food Colours Why Food Colours??? Food colours are ingredients that are added to food or beverage to enhance its appearance Colours when added to food products imparts very bright and tempting effect Consistency in the Enhance the visual Improves the product appearance appeal of a dish
Slide 18: Huge Industry Potential with Limited Players
Huge Industry Potential with Limited Players Food Colour Industry Growth Upsurge in demand for food colors from various end-use industries, including food & beverages, bakery & confectionery, dairy products, meat & poultry, and seafood Industry Potential USD Bn +6% CAGR 5.1 Colour is a key component
Slide 19: About Vidhi Specialty Food Ingredients
About Vidhi Specialty Food Ingredients An Institution in Edible Colour Technology Existing Capacity of over 2nd Supplying to80 Countries 3,500 MT p.a. Over 200 Largest food colour manufacturer in Asia across 6 continents + active customers ~8,500 MT p.a. under expansion Diversified End User Industry
Slide 20: Synthetic Food Colours
Synthetic Food Colours Synthetic Water Full range of 14 water soluble colours available in Primary Water • Primary Food Water Soluble Colours are water Soluble Food Microfine Powder, Fine Plating Grade Powder & Granular soluble, and impart coloring to any product when Soluble Colours Forms Colours d
Slide 21: Legacy of over 2 Decades
Legacy of over 2 Decades Vidhi Dyestuffs Mfg. Ltd. Increased Production Brownfield expansion with Capacity expansion plans up incorporated with production Capacities to 90 MT / capacities increased to 250 to ~900 MT / Month with 2 capacity of 30 MT / Month Month MT / Month Greenfield Expansions 2022
Slide 22: Wide Product Range
Wide Product Range FD&C Certified FD&C Certified Water Soluble Colours Lakes Water Soluble Colours Lakes Tartrazine Allura Red Lake Tartrazine Lake Allura Red FD&C Yellow 5 Lake FD&C Yellow 5 Quinoline Yellow Patent Blue V Lake Quinoline Yellow Lake Indigo Carmine FD&C Red 3 Lake FD&C Yellow 6 Sunse
Slide 23: Existing Manufacturing facilities
Existing Manufacturing facilities • Our Manufacturing facilities have been audited and found satisfactory by the U.S. FDA • Our present and operational manufacturing facilities are spread over an area of 1,76,000 square feet, located in Dhatav Village of Raigad District in the state of Maharashtra •
Slide 24: Long runway for growth
Long runway for growth Capacity Expansion Dahej Metric Tons per Month In Dahej Sez, Gujarat ~700 ~1,000 350 MT per month Capacity to be installed EC clearance received 3x Planned Capacity Expected timeline: Soon to be commenced Expansion in 1 year 325 Roha Arjun Foods, a wholly-owned subsi
Slide 25: Diversified End-user Market
Diversified End-user Market • Processed Foods Food & Beverage • Lip Gloss • Soft/Health Drink Cosmetics • Nail Varnish • Ice Creams • Mascara with diversified end‐user market • Sherbets Highly regulated niche market • Jam’s & Jellies • Eye Shadow • Juices Pet food & Cattle Feed Confectionery & • Cho
Slide 26: Marquee Customers across Industries
Marquee Customers across Industries Cosmetics Customer & Industry Diversity Confectionaries & Bakery Britannia Unilever Procter & Gamble Nestle Mars Pepsi Personal/ Home Care Kraft Pfizer Kerry Coca-Cola Sanofi ITC Food & Beverage Cipla Cadila Mondelez Parle G Rasna Mala’s Pharmaceuticals Pet food,
Slide 27: Global Footprint
Global Footprint Continent Wise Sales Country Wise Sales (Q2FY23) USA Vietnam 8% 11% 10% Mexico Egypt 20% 3% 17% 2% UAE Philippines 2% Italy MALTA 4% Spain AFGHANISTAN 3% 13% 37% China TURKEY 15% H1FY23 Q2 FY23 4% Indonesia Australia 2% canada Rest of the World 2% 55% 4% 57% 3% 3% 2% AFRICA AUSTRALA
Slide 28: Stringent Regulatory Approvals
Stringent Regulatory Approvals Synthetic Water Soluble Colours European Commission & JECFA Approved Aluminum Lakes D&C Colours European Commission & JECFA Approved U. S. FDA Approved Blends FD&C Colours European Commission, JECFA & U. S. FDA Approved U. S. FDA Approved Co‐Blended Lakes &Co‐Blended G
Slide 29: Certifications & Regulatory Approvals
Certifications & Regulatory Approvals 1st Company in the field of manufacturing synthetic food colours in India to be awarded with ISO 9002 in the year of 2000 ISO 9001:2015, ISO 22000:2005 certified company The Management Of Food Hazard Analysis (HACCP) system for the manufacture of synthetic
Slide 30: Technology and R&D strength
Technology and R&D strength Stringent checks and processes established at each stage from Raw Material testing to In‐Process to Manufacturing processes to delivery of Finished Goods to ensure desired products Fully equipped & functional laboratory accredited by The Bureau of Indian Standards forms t
Slide 31: Growth Drivers
Growth Drivers Increasing Global Presence Maximum Utilization of Capacity 5 1 Maximize the capacity utilizations post Penetrating the untapped markets & increasing planned expansion with multiple customers in the wallet share of existing customers on board Customer Satisfaction Automated Manufacturi
Slide 32: High Entry Barriers
High Entry Barriers Technical Know‐how Highly Regulated Markets • Technical know-how with years • Operate in a highly regulated markets of experience for continuous with multiple regulatory approvals development of new products & required colours • Undertaken various approvals backed by an appropria
Slide 33: Key Differentiators
Key Differentiators Products Renowned name in Food Colour Industry Regulatory Large Product Variants Highly Regulated Market Diversified Usages Consistency is a Key Diversified customers Long Customer Approval Cycle Long standing relationships with Large MNC as a customers Financial Strength R&D & P
Slide 34: Experienced Board of Directors
Experienced Board of Directors Mr. Bipin M. Manek Mr. Mihir B. Manek Mrs. Pravina B. Manek Mrs. Vidhi H. Parekh Chairman & Managing Joint Managing Director Non-Executive Director Wholetime Director Director Mr. Niren D. Desai Mr. Prafulchandra A. Shah Mr. Rahul C. Berde Mr. Ashit K. Doshi Mrs. Jyoti
Slide 35: Strong Management Team
Strong Management Team Mr. Bipin M. Manek Chairman & Managing Director Rich & Diversified experience of over 35 years in the field food colour manufacturing. Acknowledged as a thought leader in transforming the Company from a small food color manufacturing company to the Asia’s 2nd largest food colo
Slide 36: Thank You
Thank You Company : Investor Relations Advisors : Vidhi Specialty Food Ingredients Limited Orient Capital (a division of Link Group) CIN: L24110MH1994PLC076156 Mr. Irfan Raeen : +91 9773778669 Mr. Mitesh Manek - CFO Irfan.raeen@linkintime.co.in mitesh.manek@vidhifoodcolors.com Mr. Rajesh Agrawal : +
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